Insolvency and Dealing with Debt for Businesses
If you or your business are being pursued by creditors but you have insufficient funds to pay them and there is no legitimate reason to withhold payment, Hill and Abbott Solicitors can advise you and assist you in negotiating with your creditors.
We can also advise you in relation to what options may be available to you. This could include formal arrangements with your creditors (also known as Individual Voluntary Arrangements for individuals or Company Voluntary Arrangements for companies) or bankruptcy for individuals and liquidation or administration for companies.
There are ‘rescue’ mechanisms available for individuals and companies and we work closely with a number of insolvency practitioners who can help you.
If the debt is legitimately disputed for one reason or another, then insolvency procedures are unlikely to be appropriate and grounds may exist to set aside a statutory demand, oppose a bankruptcy petition or oppose a winding up petition.
It is important to deal with these matters as quickly as possible as ignoring mounting debts can make things significantly worse moving forward. Equally, delay in making applications to the court in relation to steps which creditors have taken against you can prejudice your or your company’s ability to dispose of those proceedings. If you or your business is having financial difficulty then contact us as soon as possible. We can assist you in restructuring your business or dealing with debts generally.
If appropriate, we can put you in touch with an insolvency practitioner. If done at the right time, this can often avoid formal court proceedings and can save a business entirely.
We also work for insolvency practitioners in their capacities as trustees in bankruptcy, administrators, receivers or liquidators.
We will be happy to provide you with some initial advice and a no obligations quote for any work that may be required.
Often for individuals and business owners, the prospect of insolvency is daunting and can appear very unfair and complicated.
Prevention is better than a cure and if financial problems are dealt with early enough, the onset of formal insolvency procedures can be avoided altogether.
However, if insolvency cannot be avoided, we can help you through the process. If a company is placed into administration or liquidation or enters into a Creditors Voluntary Arrangement, or if an individual is made bankrupt or enters into an Individual Voluntary Arrangement, Hill and Abbott Solicitors can assist.
We act for and against liquidators, administrators, receivers and trustees in bankruptcy.
We can assist in clawing back previous transactions that may have been entered into with a view to defrauding creditors or reducing company assets, which might otherwise be available to creditors.
We can also assist and advise office holders in relation to challenges to their remuneration, the terms of a Company Voluntary Arrangements and allegations of breach of their duty, which can give rise to personal liability.
Often, if a director is accused of some sort of act or omission that has led to the company’s ultimate downfall, they may face director disqualification proceedings, misfeasance claims or other proceedings issued by liquidators or office holders. Such claims can result in the director being made personally liable and having to contribute a sum to the assets of the company for the benefit of the creditors. We can assist office holders in respect of bringing such claims and directors against whom claims may have been made.
Whether you are an insolvency practitioner looking to recover sums or a director facing such allegations, we can assist you.
We also have experience of acting for creditors of insolvent companies. This includes challenging the remuneration of insolvency practitioners and dealing with the appointment and replacement insolvency practitioners.
As with companies, the sooner that debt issues are addressed the better and generally means that more options are available to debtors with a view to avoiding bankruptcy or other formal insolvency process completely. However, if bankruptcy cannot be avoided, or if an application for a formal Individual Voluntary arrangement is required, we can assist you.
We act for creditors, debtors and office holders and can assist all of them in the event that there are challenges or allegations made in relation to remuneration, actions or conduct.
If an income payment order is sought by an office holder or opposed by the bankrupt, then we are able to advise in relation to the best action to take when considering this course of action.
We can assist office holders in making applications to sell a bankrupt’s home or assist a bankrupt in responding to such an application, which generally has to be made within 3 years of bankruptcy. We also act for spouses and family members of bankrupts, who may have claims against the bankrupt’s estate or are facing claims against them in respect of jointly owned assets. We can also assist in recovering sums that a bankrupt may have put beyond the reach of creditors or responding to such claims and look to claw back such transactions for the benefit of the creditors.
Individuals who are made bankrupt are not allowed to act as company directors, which can have a serious detrimental impact on their lives moving forward. We can help bankrupts to make an application to the court for permission to act as a director if appropriate.
If you would like to discuss any issues highlighted above that may be affecting you or your business contact us today: